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I think Wanxiang still will have to be approved as a qualified bidder and be approved via the CFIUS process. Judge cannot control the second part.
Agree, and Wanxiang wants the whole company, apparantly pretty badly.
Per Ilene Slatko @DelShareholder via twitter: Pohl: wanxiang was aked to be stalking horse. They said they'd be backstop bidder, but never put in agreement. Then they offered to buy all
I don't think Wanxiang is going to be denied. They have made it abundantly clear they want this company. They will pay a premium price, IMO, to get it.
@DelShareholder: Pohl: companies are now calling us. Many are foreign. 25 entered confidentiality agreements
Does this not sound like a huge positive here? 25 companies entering into confidentiality agreements due to their interest in the company. Has to be value there, for there to be this many companies interested.
Wanxiang is making it very clear they want this company. Their owner is a mult-billionaire. Look it up. It will be interesting to see how far (high) they will go to acquire the company.
.12 to .13 is a bargain, imo. They could buy them outright, with court approval, at any time in the near future, easily at multiples of this price. I will hold to see where this goes.
It may take longer than the 5th to see that much, however, it is hard to say what the valuation will be if one of the companies offers a buyout. It could easily exceed $ 1.00 if a bidding war ensues with all the interested parties. I feel pretty good about what is going to happen over the next few weeks. Not going to stress over the day to day pps fluctuations.
If a buyout offer is approved, you could sell your stock then via the open market. Typically, when you do that you will sell for a discount for not waiting until the purchase settlement date, which is your choice. If you wait until then, you would receive full buyout price.
Good find! Just as we thought, company making good progress in BK. Would be shocked if DIP financing not approved on November 5th.
Agree. Just get tired of the BS. Hopefully, people will do their own DD. I have played many bk stocks, and they don't just quit trading over night.
I think we are in a loading zone now. There is obviously multiple companies interested in A123. They would not be if there wasn't something there they thought they could profit from. Who knows, one of the companies could just go ahead and buy them outright at any time, as long as the judge approves.
Anxious to see where we are in 2 - 4 weeks from now.
Really?! This is the 79th consecutive day under $1.00. They appealled it. Do some DD, and quit trying scare tactic instead of facts.
I think the situation is turning our way. They got rid or Irl as a scapegoat, deserving or not, to try to appease some of the folks filing/considering lawsuits. That is debatable, I guess. I do not think that will accomplish the company's goal, though.
People know they have gotten a bad deal here, as they filed for chapter 11 prematurely. Going to be interesting to see when there will almost assuradly be an equity committee appointed to represent the shareholders interest.
All, imo, of course.
Yep. Still here, frankj. Just trying to be patient.
Good morning, Augusta. Hope you have a good trip and great birthday. I am a November baby, also.
Bonds are still trading. Volume and price have decreased though.
http://cxa.gtm.idmanagedsolutions.com/finra/bondcenter/QuickScreener.aspx?ShowResult=true&BondType=Corporate&Symbol=pcx&YieldMin=&YieldMax=&CouponMin=&CouponMax=&MaturityMin=&MaturityMax=
OK, fine with me. You would have 5 times as much money as you would have here, netting 4 times the money. I would still take it.
If you read my post, I said a quintuple from here around .20 if it could reach a 1.00. I believe 1.00 divided by.20 is five, therefore the quintuple.
Well, right now, the market thinks it is around .17 to .18. I think it is more than that. Hard to put an exact number on it, but I believe it is a lot more than .17, and I have put my $ where my mouth is.
No one knows for sure how this is going to turn out. It is very early in the process, not even past 90 days yet. There is no guarantee commons will get nothing, or that they will receive anything. Until the company emerges from bk, it will trade. There are many bk's where they do receive compensation in the form of $'s, or share of the emerging company.
One example, Chemtura, CEMJQ, went from around .03 to 1.78. At some point someone was willing to sell at .03, and at some point during the process, someone was willing to buy at 1.78.
If you do not want to trade it, that is your perrogative. For those of us who do, we can take the risk, and see what happens.
You have to have buyers and sellers to have a market.
Hey, frankj. Hope you are doing good. Still here. Being patient. I think it favors the company's public perception for the hearing to remain in New York, however, even with a change of venue, the case is heard by a judge, not a jury. So, facts should remain facts no matter the city they are heard in. The union knows re-negotiating their contracts, pensions, etc, is one of the main reasons PCX filed. They are going to do whatever they can to protect what they have. This is one of their tactics. I do not think it will work, but hey, what do they have to lose.
There is a 90 day period where no one but the company can do anything regarding the bk. Once this period is over, I feel like an equity committee will be forthcoming. There are to many large investors, funds, that have too much to lose to go down without a fight. I believe the stock price will spike off of any talk of this taking place.
I realize, as someone mentioned last night, the real winners are the lawyers in this process. Yes, they will burn some of the cash trying the case, however, 500 million is alot to burn through. Think of it this way, even if they burned through 400 million to the lawyers, etc, of the assets over the liabilitiies, which is a high estimate, imo, that still leaves over $ 1.00 per share of equity leftover. We are trading under .20. That is a quintuple from here.
I am hanging around. Actually bought more a couple of weeks ago below .12. There is value here, imo, and we are very early in this process. I am still suprised it is trading this low.
If word of equity committee being formed comes out, then I think $2 -$3 is within reason. Seen it have exponential affect many times.
Due to number of funds invested in company, would be really suprised if committee is not formed.
It never really had that good rally after the bk announcement, that most with this kind of assets over liabilities have. AAMRQ ran from .20 to 1.20 or so in seven trading days immediately after the announcement.
I believe we only achieved low .30's post bk so far, after hitting .20 or so. Of course, it dropped below .10 after that.
Would not be suprised to see this exponentially higher by end of week.
Great point. This would have a definite effect on the value of the company. Something to keep an eye on.
Don't worry about it. I think I would prefer Longball anyway. Sounds a lot better than LostBall, LOL.
Great summary, jaxstraw. Thanks. This was a real shame the way it finally worked out because shareholders were going to come out with a lot more than what they finally did. As you stated, some of the funds had their own agenda in mind of taking over the company, and ruined it for everyone, including themselves, in the end.
Wallstreet61 did what he could, and as you said the funds did not want him involved, and wanted to deal with the debtors on their own, not as a full EC. Natasha and the other lawyers put the screws to them, and the other shareholders in the process, because they pissed the debtors off and took it out on them in court, and the judge sided totally with them (kind of suprised me at the time, because it really was not fair).
I remember the judge would not hear the EC's POR because the debtors lawyers stated if the judge heard the EC's plan, then the creditors wanted to present seperate plans, and they all would have to be heard. The judge would not do it, because Natasha argued the process had already been going on a long time, and hearing everyone's POR's would just extend it too much. The judge agreed. He stated the EC should have been involved in the one presented to the court, which they were not in the final presentation. The debtors basically cut them out and threw them a bone.
My point was in the previous post with the CEMJQ reference was that there still can be value in the shares. Just because they are down, does not mean that will not go back up, maybe significantly. CEMJQ is one example, there are many others. There are examples of companies that did not trade well in bk also. I just feel this one is worth more than .12, similar to CEMJQ. Even though it did not end as well as many had hoped, there was a lot of $'s made during the process, which took well over a year.
BK investing is not for everyone. It can be stressful, but in some cases, can be rewarding. I really wish, for all the shareholder's sakes, the hedge funds had dealt in the whole equities interest, not just their own. Would have been a much better result for everyone. I have been out for a long time, but some investors rode it all the way out to the final settlement, which I believe was just distributed.
Thanks, again.
Yes, frankj, I am still in and actually added some more Friday afternoon. I still think it has quite a bit of room to rebound. As we have stated before, there is no guarantee, and it might go to zero, however, the assets vs. liabilities are worth over $5 per share.
That said, much of that could be burned during bk with attorneys, etc., but they would have to really go through it to eat up all the equity. They are only about three weeks in. This could take up to a year or more. I still feel like there is an excellent chance an equity committee will be appointed, but it may still be a few months away.
At this point, no one knows if the shares will have value when they emerge. I just think they have to spend alot to go through the $5/ share. It is trading around .10. Big gap between those two values.
CEMJQ dropped to .03, moved all the way back to 1.78. We had equity valued at about $2.00/share at one time. It got close. It took a while to get there, but it happened.
I cannot say it will definitely go back up to those levels, but I am willing to take the risk/reward at these levels.
That is usually the way it works with me too. About the time I sell, everyone should go all in!
Well, I am still holding. It may take a few more weeks to see what direction this is really going to take. I can't say that I haven't seriously thought about getting out too, though.
Until we get some more detail from the court files, the price could go either way. Hard to stomach some days.
I honestly did not think it would fall this far before going back up, but no one really knows for sure. Everyone that invests in this or is waiting for lower prices is speculating, and each investor has to decide how much risk they are comfortable with.
Good luck to you.
frankj, you seem like a decent guy. Hate this hasn't turned for you. Wish you the best.
Maybe true, but still doesn't excuse the lack of integrity. He did not have to say anything regarding value to the shareholders, under the circumstances.
I know, what you are saying. I am just saying, the CEO didn't display any integrity when he saying one thing, then planning something else along. He had to know it would suck some investors in.
You are right. It is a real dirty shame that the new CEO was re-assuring existing shareholders that he was here to create value for the shareholders, meanwhile planning the bk. I have little doubt he was brought in to do just that, lead the company through a bk.
You don't just wake up one morning, and say "I believe we need to file bk today". It is a move that takes a while to plan.
The truth will be in the filings from here on out.
That would be really be a capitulation scenario, and no doubt $ making opportunity if it fell that low.
Thanks, Ernie. Good info.
You are welcome. When we were in CEMJQ, it went really low before it started back up, then it had it's up and downs on the way up. They were several months into the bk until an equity committee was formed also.
By the way, thanks for posting your reply from the company to your email. Like you stated, about what was expected.
frankj, I am suprised the price fell this low, however, sometimes, in these situations, investors become frustrated, impatient, and just say "Screw it. I have had enough. I am out."
That is called capitulation, and creates a great buying opportunity. Once this settles out, the share price should recover depending what is released in any court filings. That will overrule anything else. For me, I am still hanging on to the fact that in the filings, they have $ 500 million more in assets than liabilities. Until that changes, there is still significant more value in the shares than where it is trading.
Can they burn through some or all of that during the bk process with lawyer fees, etc, they probably could, however, the judge should make sure that the company is operating in a fiduciary manner when the case goes through the court. Any large expenses, assets to be sold, or creditors to be paid, has to be approved in court.
No problem. I just wanted to make sure my position was clear. Also, I do not know if the change of venue would be positive for the shareholders. I think many of the union expenses, pensions, etc, were what the company is trying to re-negotiate or spin back to Peabody.
I think the more successful they are negotiating with the unions, meaning giving them less, then the more would potentially be left for the shareholders. That is just my theory.
I doubt the unions care very much about the shareholders, unless some of their members are holding shares in their 401k's.
frankj, I didn't say it was game over. I just stated I read that the union requested a change of venue to West Virginia, and I was in agreement that they probably would be more sympathetic to the union cause.
No way would I make a statement that it was game over. I had said in my earlier post, that it is still early in the bk process. You may have misunderstood what I had written.
Yep, I read that. I am sure they feel West Virginia will be more sympathetic to their cause.
I know it is still early on in the BK process, but I am really suprised this has dropped this low, with the assets listed in the filing.
8.25 bond closed at the high of the day, $49.00, up $1.48. The 3.25 bond closed at $14.00, up $1.00, high of day was $15.25.
So, interest is still in the bonds. Share price is not following. Hopefully, will soon.
On Friday, 8.25 bonds closed at $47.52, down $0.99, with a high of $50.50. The 3.25 traded flat and closed at $13.00, down $1.50, on very little volume.
We will see what this week brings.
Good catch. The full sto is looking good here too.
http://stockcharts.com/h-sc/ui